Agricultural Financing, Agricultural Output Growth and Employment Generation in Nigeria

Ogbuabor, Jonathan E.; Alisigwe, Jennifer Nkechi; Orji, Anthony

doi:10.11118/ejobsat.2021.002

Cited by 11 publications

(11 citation statements)

References 22 publications

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“…Also, formal credit social safety net generated some consequences that led to income reversals for rural households. Orji et al (2020) evaluated the causal relationship between agricultural credit and Nigerian agricultural output based on Pairwise Granger causality test. The results indicated that causation between agricultural financing and agricultural output did not exist.…”

Section: Empirical Reviewmentioning

confidence: 99%

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Ngong

Onyejiaku

Fonchamnyo

et al. 2022

AJEB

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Purpose This paper investigates the impact of bank credit on agricultural productivity in the Central African Economic and Monetary Community (CEMAC) from 1990 to 2019. Studies’ results on the impact of bank credit on agricultural productivity are not conclusive. The studies demonstrate diverse outcomes which are debatable. The results are conflicting. Design/methodology/approach Agricultural value added (AGRVA) to the gross domestic product (GDP) proxies agricultural productivity while domestic credit to the private sector by banks (DCPSB), broad money supply, land, inflation (INF), physical capital (PHKAP) and labour supply are explanatory variables. The autoregressive distributed lag technique is utilized. Findings The co-integration test results show a long-run co-integration among the variables. The findings disclose that DCPSB, land and PHKAP impact positively on the AGRVA. Broad money supply, INF and labour impact negatively on the AGRVA to the GDP. Research limitations/implications The results suggest that the CEMAC governments should encourage effective ways to increase bank credit flow to private enterprises in the agricultural sector through efficient bank's intermediation. Practical implications The governments should create more agricultural banks and improve the operation of existing ones to ensure direct credit to agricultural activities. The Bank of Central African Economic and Monetary Community should apply aggressive policy which eliminates all the bottlenecks undermining credit flow to the private sector in mutualism with agricultural productivity. Social implications The commercial banks should give more credit to private sector to mutually benefit the agricultural sector and the banking sector. The governments of the CEMAC economies should expand funding into the capital market which considerably boosts agricultural productivity. Originality/value Studies’ results on the impact of bank credit on agricultural productivity are not conclusive. The studies demonstrate diverse outcomes which are debatable. The results are conflicting; some reveal positive impacts, some show negative impacts and others indicate U-shape behaviour. Hence, research is required to fill the lacuna.

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Section: Empirical Reviewmentioning

confidence: 99%

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Ngong

Onyejiaku

Fonchamnyo

et al. 2022

AJEB

View full text Add to dashboard Cite

show abstract

“…These results imply that the CIS currencies offering a significant interest differential tend, on average, to depreciate over the sample period as UIP predicts. Orji et al (2013) examined whether the theory of UIP holds between Nigeria and USA. The result revealed that the theory of UIP does not hold between Nigeria and USA.…”

Section: Uncovered Interest Rate Parity (Uip)mentioning

confidence: 99%

Assessing the Applicability of Uncovered Interest Parity in the South Asian Frontier Financial Markets

De Silva,

Weerasinghe

2023

S. Asian J. Finance

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Purpose: The purpose of this research is to establish whether, the Uncovered Interest Parity (UIP) condition exists in Bangladesh, Pakistan, and Sri Lanka, categorized as the South Asian frontier financial markets.Design/Methodology/Approach: The research uses the deductive approach. The data was collected from International Monetary Fund Statistics. The data set used consists of monthly data from March 2010 to April 2020. Interest rate differential was employed as the independent variable in this study, with the foreign currency exchange rate differential as the dependent variable. The researcher used the Cointegration model and the Vector Error Correction Model to analyze the data to measure the long-term and short-term impact respectively.Findings: It was found that, interest rate differential had a statistically insignificant negative relationship with the exchange rate differential in all three countries both in the short and long run. The overall test results show that the rejection of UIP hypothesis within the given time frame in South Asian frontier financial markets confirming the previous findings relating to practical situation of UIP condition.Originality: This article reviews the rejection of UIP condition in Bangladesh, Pakistan and Sri Lanka, categorized as the South Asian frontier financial markets. In a single paper it provides both short-term and long-term rejection of UIP. The rejection of the UIP condition implies that there is a possibility for an arbitrage opportunity.Future Direction: The future research can assess the applicability of UIP for a larger sample and different data analysis techniques such as Generalized Method of Moment.

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“…Likewise, Bidisha et al (2018) employing household level and plot-level data for Bangladesh asserted that farm credit has no direct impact on productivity. Further, Orji et al (2020) also evaluating the causal relationship between agricultural credit and Nigerian agricultural output based on pairwise Granger causality test indicated that causation between agricultural financing and agricultural output did not exist. Of late, Sekyi et al (2021) using the United States Agency for International Development (USAID)/FTF survey for 2,903 farm households of Northern Savannah Ecological Zone found a negative but insignificant effect of access to credit on the productivity of high-value crops (i.e.…”

Section: Empirical Nexus Between Agricultural Credit and Crop Product...mentioning

confidence: 99%

“…(2018) employing household level and plot-level data for Bangladesh asserted that farm credit has no direct impact on productivity. Further, Orji et al. (2020) also evaluating the causal relationship between agricultural credit and Nigerian agricultural output based on pairwise Granger causality test indicated that causation between agricultural financing and agricultural output did not exist.…”

Section: Empirical Nexus Between Agricultural Credit and Crop Product...mentioning

confidence: 99%

Agricultural credit and productivity of crops in India: field evidence from small and marginal farmers across social groups

Yadav

Rao

2022

JADEE

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PurposeThis work examines the impact of institutional agricultural credit on crop productivity of some major crops such as paddy, cotton, wheat and pulses for small and marginal farmers across various social groups.Design/methodology/approachThe cross-sectional field data on socio economic variables was collected from three Indian states from about 400 small and marginal farmers across various social groups using multi-stage stratified random and purposive sampling through a structured questionnaire by interviewing. The method of propensity score matching (PSM) was employed to calculate average treatment effect (ATE) and average treatment effect on the treated (ATET) by categorising sample farmers as treatment group and control group where crop productivity was considered as outcome variable and access to institutional credit was considered as treatment variable.FindingsThe PSM estimates reveal that ATE and ATET for all the selected crops are found to be significantly higher for the treated group vis-à-vis non-treated group suggesting that institutional agricultural credit has a statistically and significant positive impact on the crop productivity.Research limitations/implicationsSimilar study can be extended for more crops and across regions in India for a universal coverage.Originality/valueThe agricultural credit policy of India has been to increase the access and availability of institutional farm credit. This has led to in general increase in the flow of formal farm credit to agricultural sector. However, the impact of institutional credit and crop productivity especially for small and marginal farmers across social groups is not well recognized in India using field data. Accordingly, this field data study contributes to the existing research by providing fresh evidence from field across social groups for both kharif and rabi crops using recent survey data from small and marginal farmers which has important policy implications.

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Agricultural Financing, Agricultural Output Growth and Employment Generation in Nigeria

Cited by 11 publications

References 22 publications

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Assessing the Applicability of Uncovered Interest Parity in the South Asian Frontier Financial Markets

Agricultural credit and productivity of crops in India: field evidence from small and marginal farmers across social groups

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